“I fully understand concept behind it (reducing inflation), however if we do that - then what insentives would content creators have to continue using HIVE?”
The concept isn’t to reduce inflation - it’s to move the most contentious part of Hive and the part that we simply do not excel at to the second layer. This is where other apps reside and where industry experts can create their own interface for social media and tokenize that system.
We clearly don’t have experienced social media devs and marketers. Our number of social media users is in the single-digit thousands after four years. But our chain is based on this primary value proposition...and it’s not working. Waiting for spikes in interest and FOMO purchasing of cryptocurrencies isn’t a successful strategy for the main product we have to offer.
There are existing communities that have their own tokens and are distributing these tokens to content creators and curators on Hive’s second layer. There’s no reason to not be able to have a general community and interface/website that does exactly what Hive does regarding content rewards, but have it on layer two instead.
With the growing ecosystem on Hive and on top of Hive, including gaming and art, there should be plenty of incentives for users to stick around the ecosystem and use it how they see fit.
What keeps people coming back to Ethereum and using that blockchain? The games they have on their base layer? The art tokens they have on their base layer? Oh, right...those are on layer two...and they get new users, developers, and investors daily. And Ethereum is a horrible solution in most cases.
We can do better and can certainly retain the community we have - and even grow it. But as long as we’re tied down with one primary value proposition and a large portion of blockchain rewards that everyone publicly fights over, we’re not going to get anywhere, as the numbers continually prove.
This is very true.
Thank you for your mature and polite reply @ats-david
One more question:
If concept is not to reduce inflation, then where would this inflation end up? From my understanding your idea is that content creators shouldn't be rewarded.
Yours, Piotr
Dear @ats-david
It's me again.
I've been thinking a lot lately about idea of moving rewards to 2nd layer and I'm wondering: if neither Steem or HIVE managed (with all it's resources) to create enough value and demand - then how can we expect that those who would launch their tokens (2nd layer) will succeed?
Steem-engine and hive-engine are great example. Literally hardly any token have a value. I'm afraid that most would fail (failure is to be expected in my opinion).
Aren't you afraid, that moving rewards to 2nd layer would be complete failure? Just like most SE and HE tokens turned out to be?
Yours, Piotr
!ENGAGE 50
This was an experiment and let's be totally honest, despite active userbase, the experiment failed. No investor in a traditional internet setup would be satisfied with 10-15k daily users on a "social media platform" after 4 years (of which many automated as well).
Our blockchain is faster, cheaper, can scale better, and was smart even before "smart contracts". Hive has all potential to be a "fat protocol/thin applications” showcase.
Imagine Uniswap without GAS. Imagine games who can actually store every operation on the chain. Imagine being able to tell founders of a platform which is about to shut down due to operational costs “you know not every blockchain has ETH’s friction and would not be cheaper to build upon, there’s one which can reduce your cost by 1/3 and offers free transactions. And users will actually remember their username and wallet address.”
Hive’s key assets are NOT the social rewards.
The “incentive” was an experiment and has become more often than not a pure downpressure factor. By moving the “social aspects” to layer2, these will have much better growth opportunity due to their smaller but more focused nature. Social rewards on layer2 will also be much healthier than the current ecosystem where suddenly every fart is about finance or the previous thinking of “following the stake” (read: delegations). A lot of content had never been created if not for “those incentives” and newsflash... because most of that content is “fake”, and often of abysmal quality, it dilutes the actual value of the token since it was rewarded.
We have one of the most attractive platforms and here we are, four years later, still continuously wanking over “but my rewards!?!?” totally obliviously to the fact that we are failing, failing hard. Only the chain’s technology and promise — compared to others — keeps this joint going. Promise which, of course, includes the potential for tokenized social media.
ENGAGEtokens.